08/27/2026
🏡 FIXED OR VARIABLE? Let’s put some actual numbers behind the decision.
One of the biggest questions I’m getting right now is:
“Should I go fixed or variable?”
And the answer isn’t the same for everyone.
Here’s a simple example using a $500,000 mortgage with a 25-year amortization:
💜 Variable at 3.60%
Approx. payment: $2,527/month
💜 5-Year Fixed at 4.24%
Approx. payment: $2,703/month
That’s approximately $176/month less to start with variable.
But that savings comes with a trade-off.
With a variable mortgage, your rate can move as prime changes. You have the opportunity to benefit if rates remain low or decrease, but you also need to be comfortable if they rise.
With a fixed mortgage, you know your rate and payment for the term. You may pay more today for that certainty, but there are no surprises if rates increase.
So instead of asking:
“Which rate is better?”
I like to ask:
👉 How much room is there in your monthly budget?
👉 How would you feel if rates increased by 1%?
👉 Is predictable cash flow important to you?
👉 Are you comfortable watching rates move?
👉 How long do you expect to keep this mortgage?
The Bank of Canada is currently holding its policy rate at 2.25%, but economic and trade uncertainty remains elevated.
There’s no universal winner between fixed and variable. The right mortgage is the one that fits your finances, your comfort level and your goals.
👩🏼💻 Tanya Rogalczyk | Simply Mortgages with Maximal Mortgages Inc.
✉️ [email protected]
🖥 simply-mortgages.ca
Rates shown are illustrative examples only and are not a guaranteed rate or offer. Actual rates and payments depend on qualification, lender, mortgage type and other factors.
